Nope, the game is pretty live and going well, the fact is that SOME towns are istanced because you have some quests that are done in solo, while others are global... so.. it's a bit hard to.. explain how it work exactly..

If you've played other MMOs that make use of "phasing", that's what's going on. The racial starting towns are generally quiet, but you'll see more folks as you level up. Usually by level 5-6, you're out of the initial story and moving into your faction's story. After you reach your capitol city, it should feel different.

Also, if you join the Discord server, you should have folks to chat with even if you're not seeing them in game at the moment.